IB skill practice

Analyse unemployment and inflation

Economics SL macroeconomics skill with original exam-style diagram, data-response, and policy-evaluation seeds.

Paper 1, Paper 2 5 marks Difficulty 2

Explain cost-push inflation

A Reserve Bank classroom briefing reports a sharp rise in fuel and imported input prices. Explain the inflationary pressure. Use the labelled macro diagram, data, or extract evidence before writing the answer. Enter the answer and choose the interpretation that best matches the macroeconomic evidence.

Worked practice: economic evidence and answer

Identify the economic evidence first, then state the result and interpretation.